Why It Matters:
The Senate Small Business and Entrepreneurship Committee heard from four entrepreneurs on August 5, as the Trump administration pursues sweeping changes to the Small Business Administration that would slash its budget by 67 percent and bar green card holders from accessing federal loans.
The Trump administration has proposed cutting the SBA’s budget from roughly $1 billion to $329 million and eliminating 15 of the SBA’s 16 entrepreneurial development programs. The proposed cuts would affect services to nearly 1 million small businesses annually. The administration also implemented a policy requiring 100 percent U.S. citizen or national ownership for small businesses seeking SBA loans, effectively barring green card holders.
The Policy Clash
The hearing, titled “Hearings To Examine The Next 250, Focusing On Small Businesses Leading The Way,” featured testimony from Dr. Ajay “AJ” P. Malshe of Arkwright Space, Ms. Lorena Cantarovici of Maria Empanada, Mr. Valjay Rigby of Utah Farm Bureau Federation, and Ms. Nikki High of Octavia’s Bookshelf.
The Trump administration has touted deregulation and tax cuts as its small business agenda. According to SBA Administrator Kelly Loeffler, the administration has “cut taxes and regulations, restored fair trade and public safety, and shut down the Green New Scam, fraud, DEI, and open border policies.”
Four Witnesses, Four Stories
Dr. Ajay ‘AJ’ Malshe of Arkwright Space testified as a tech and space entrepreneur who has received an R&D 100 Award.
Lorena Cantarovici, founder and owner of Maria Empanada, shared her journey from Argentina to Denver in 2000 with no personal connections. She opened her first storefront in Lakewood, Colorado, in 2011, and has since expanded to eight locations across Denver.
Valjay Rigby, President of the Utah Farm Bureau Federation representing more than 3,700 members and family members, brought agricultural perspectives to the table. A fifth-generation farmer from Newton, Utah, with degrees in finance and information systems from Utah State University, Rigby has engaged directly with federal lawmakers and USDA leadership on behalf of Utah farmers.
Nikki High, founder and owner of Octavia’s Bookshelf in Pasadena, California, testified as the owner of the first Black-owned bookstore in Pasadena, which opened in 2023 and focuses on books by Black, Latino, Indigenous, and other authors of color. The independent bookstore is named in honor of sci-fi author Octavia E. Butler.
The Backdrop: Competing Visions
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which have supported breakthroughs in biotechnology, advanced manufacturing, artificial intelligence, and national security, were formally reauthorized on April 13 after a six-month lapse. They are authorized through September 30, 2031.
On June 3, Ranking Member Markey and every Democratic member of the Senate Small Business Committee demanded that SBA Administrator Kelly Loeffler appear before Congress. Loeffler was the only member of President Trump’s cabinet who had not agreed to testify before Congress as of June 2026, and had not appeared before the Senate Small Business Committee in over a year as of that time.
In July, Markey and House Small Business Ranking Member Nydia Velázquez introduced a bicameral resolution to rescind the Trump administration policy banning green card holders from accessing SBA loans. According to NPR, the new SBA policy would push business owners toward riskier or predatory lending.
Committee Composition
The hearing was chaired by Sen. Joni Ernst (R-IA). Committee members in attendance or on record included Republicans Josh Hawley, Todd Young, Rand Paul, Jim Risch, Tim Scott, Ted Budd, John Curtis, Jim Justice II, Marsha Blackburn, and Jon Husted, alongside Democrats John Hickenlooper, Mazie Hirono, Chris Coons, Cory Booker, Jeanne Shaheen, Jacky Rosen, Maria Cantwell, and Adam Schiff.
The Broader Context
The SBA announced a new rule allowing eligible borrowers to combine their 7(a) and 504 loans for up to $10 million in SBA-backed financing, effectively doubling the prior cumulative limit. The rule took effect on July 4, 2026.
The SBA also launched its first-ever dedicated loan program for small manufacturers.
The Trump administration claimed that the Deregulation Strike Force has eliminated more than $110 billion in burdensome regulatory costs for small businesses in one year. The administration suspended Beneficial Ownership Information (BOI) reporting requirements, expanded Opportunity Zones to drive capital into underserved communities, and created the ‘Make Onshoring Great Again Portal’ to help small businesses
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